Bank of Japan Governor Kuroda held a press conference in Nagoya, reiterating his understanding that a rapid depreciation of the yen would have a negative impact on the Japanese economy. "I think it's a very good thing," he said about what was going on.
In this, Governor Kuroda commented on the rapid depreciation of the yen, saying, "It is desirable that the exchange rate should remain stable reflecting economic and financial fundamentals. It is one-sided, rapid, undermines the certainty of business plans for companies and is bad for the economy."
On top of that, regarding the fact that the yen exchange rate has recently reversed in the foreign exchange market and is progressing in the direction of yen appreciation against the dollar, he said, ``The government has intervened in the exchange market several times, and the unilateral and rapid trend of yen depreciation has temporarily stopped. I think there is. I think it's very good."
On the other hand, regarding wage increases, which hold the key to stable price increases, Governor Kuroda said, "The most important mechanism is an increase in domestic demand, a tightening of labor supply and demand, and an increase in wages." He acknowledged that it is important for wages to rise through a virtuous cycle.